Analysis On The Strategy Of Debt-to-equity Swap In Sinosteel

In October 2016 the state announced the implementation of debt to equity permitted to meet the requirements of the enterprise,in the event of default,the credit risk increase repeatedly made under the condition of debt to equity swap is undoubtedly a major positive for some enterprises and financial institutions,was the premise of this debt in the legal system,market,which is to stimulate the vitality of the market and has positive significance on the subject of debt.Experienced in 1999 debt to equity swap,drawing on the advantages of the previous debt to equity swap,the existence of moral hazard and other effective circumvention,which are beneficial to the implementation of the current round of debt equity swap.Taking Sinosteel as an example,this paper analyzes the problems existing in the implementation of the debt to equity swap strategy,and puts forward some measures to solve the problems.The conclusion: market-based debt highlights the role of the market in debt before the implementation,after the implementation of market to use wisdom to resolve the problems and difficulties facing him,such as later enterprises to open a benchmark for quality channel of non-performing assets disposal in china.This paper make a detailed analysis of Sinosteel in various stages of the implementation of debt to equity,debt,in the way to determine the conversion ratio,equity management,equity exit stage of strategy analysis,and conduct research on each stage of possible problems,this is the starting point of the post according to the existing problems of the market to solve.The purpose of this paper.